USD/CHF Falls to 0.7910 as SNB Decision Nears

USD/CHF corrected lower to around 0.7910 in early European trade as the US Dollar retreated after a strong rally. The move reflects profit-taking in the US Dollar Index (DXY) and slightly improved global risk sentiment, which eased some safe-haven demand for the USD. Traders are focused on a key catalyst: the Swiss National Bank (SNB) quarterly policy decision. The SNB faces a trade-off between supporting price stability and managing the risk of excessive Swiss Franc strength. Inflation in Switzerland remains within the SNB’s 0–2% target band, giving the central bank room to guide policy through its statement, forecasts, and language on franc valuation and potential FX intervention. On the US side, softer-than-expected data (including a cooling in labor market signals and weaker PMI) has made investors reassess the Fed’s rate path, reducing extended net-long positioning in the Dollar. However, the interest-rate differential between the US and Switzerland still broadly supports USD/CHF, so the current USD/CHF dip is viewed more as consolidation than a full trend reversal unless US data worsens sharply. For technical traders, 0.7910 is a short-term pivot. Support sits near 0.7880 and 0.7850, while resistance is around 0.7950 and 0.7980. A sustained move above 0.7980 could revive the bullish trend, while losing 0.7850 may open a deeper correction toward 0.7800. Elevated volatility is expected into the SNB decision, with US PCE inflation data also in focus.